مجلة الشهاب
Volume 11, Numéro 3, Pages 447-470
2025-11-15

Islamic Financial Institutions From The Perspective Of Islamic Economics

Authors : Yagoub Larbi . Raouane Abdalrahmane Raouane .

Abstract

Abstract: The accelerating development of the global financial sector has contributed to the widespread adoption of conventional financial institutions, which have attracted capital owners through diverse investment services. However, their reliance on interest-based transactions poses ethical and religious dilemmas for Muslim investors. This concern has motivated Islamic economists to formulate Shariah-compliant financial alternatives that align with Islamic legal and ethical principles. As a result, the concept of Islamic financial institutions has emerged, offering investment mechanisms grounded in the objectives of Islamic law. This paper explores the notion of Islamic financial institutions within the framework of Islamic economics. It aims to clarify key concepts related to their structure, operational models, and governance systems, all shaped by their adherence to Shariah rulings and Maqasid (higher objectives). Additionally, the study highlights the main categories of Islamic financial institutions and delineates the unique characteristics that distinguish each type within the broader financial ecosystem. Keywords: Islamic Financial Institutions; Islamic Economy.

Keywords

Islamic Financial Institutions ; Islamic Economy